Obama budget predicts $1.3T deficit for 2012

ANDREW TAYLOR
Associated PressPublished: February 10, 2012 2:38PM

WASHINGTON (AP) -- The White House is confirming a report that President Barack Obama's new budget predicts a $1.3 trillion deficit for the ongoing fiscal year. The deficit would drop to $901 billion next year under the administration's tax and spending policies.

In his budget submission on Monday the president will also repeat his call to raise the top income tax rate for individuals making more than $200,000 a year and families earning $250,000 from 35 percent to 39.6 percent as part of $1.5 trillion in tax hikes over the coming decade.

The election-year document is sure to get a brushoff from Republicans controlling the House.

The figures were first reported in The Wall St. Journal, which viewed leaked draft budget documents.